Low-Volatility

The markets are likely in for a volatile year. Nevertheless, exchange traded fund investors have a few options to help diminish portfolio risks and help hedge against the swings. Russ Koesterich, Global Chief Investment Strategist and Head of the Model Portfolio & Solutions Business at BlackRock, attributes the market volatility to a number of factors, […]

With the equities markets experiencing one of their worst stumbles in years, exchange traded fund investors may turn to low-volatility strategies that could help hedge the risks and diminish a portfolio’s swings. “Low volatility is one of the few factors that have historically performed well in turbulent markets,” according to a MSCI research note, Constructing […]

Investors who still want their foot in the market but are wary of volatility weighing on their portfolios can turn to low-volatility exchange traded fund strategies that could generate more attractive risk-adjusted returns. For instance, investors can utilize something like the iShares MSCI USA Minimum Volatility ETF (NYSEArca: USMV), which selects stocks based on variances […]

As people go bargain hunting after the recent selling pressure, investors should consider exchange traded funds that track small capitalization-weighted stocks, which have typically outperformed at the start of a new year. According to financial data provider Kensho, small-cap stocks have returned more than large-cap companies in the first quarter for the past two decades, […]

With markets experiencing wider oscillations, low-volatility exchange traded funds are outperforming traditional broad equity market bets. As witnessed this week, international events may still trigger market volatility, notably the recent sell-off in Chinese markets. The CBOE Volatility Index and VIX-related exchange traded products also spiked Thursday after a quick plunge in Chinese markets triggered selling […]

Investors seeking to expand their portfolios beyond U.S. markets may look to international exchange traded funds. When deciding to allocate toward overseas markets, investors can look to the FTSE Global All Cap Index as a guide. Alex Bryan, an analyst covering equity strategies at Morningstar, points out that U.S. markets make up 53% of the […]

Seasoned fund industry player Legg Mason Inc. (NYSE: LM) has launched four smart-beta or alternative index-based exchange traded funds that bring institutional styled strategies to retail investors. The new Legg Mason ETFs highlight the importance of risk management, especially during the current environment of heightened volatility. For instance on Monday, the huge 7% sell-off in […]

The exchange traded fund industry continues to expand its product line, providing investors with a growing number of strategies to customize and maximize their portfolios. According to XTF data, there are now 1,843 exchange traded products, which include exchange traded funds and exchange traded notes, with $2.15 trillion in assets under management. Fund sponsors launched […]

Investors seeking a more stable asset category may want to take a look at infrastructure stocks and sector-related exchange traded funds. “Good infrastructure products are unlikely to wildly outperform equity markets – but nor are they likely to create serious losses in a portion of investors’ portfolios that should be defensive,” writes Thomas Hoops, executive vice […]

A tumultuous year for the equities market has pushed more investors into low-volatility exchange traded fund strategies that try to diminish the swings. The BlackRock (NYSE: BLK) iShares minimum volatility suite has attracted $7 billion in net inflows this year and now hold about $15 billion in assets under management, reports James Comtois for Pensions […]

Investors can utilize a growing number of exchange traded funds that implement alternative indexing methodologies to diminish market risks and potential limit the impact of another bubble. James Norman, president of QS Investors, a Legg Mason affiliate, explains how market inefficiencies may lead to increased risk in the markets. “An example of market inefficiency is […]

Despite risks in some of the more volatile regions of the global markets, investors may want to position for further strength in emerging market exchange traded funds. Technical indicators indicate that positioning in emerging markets has turned more positive, according to a Deutsche Bank Markets Research note. “ETF inflows, lower borrow rates, and futures trading […]

After the recent market swings, many are wary of volatility ahead. Nevertheless, investors who still want high dividends but are also concerned about ongoing risks may turn to low-volatility, high dividend ETF strategies. “Investors can buy ETFs to get income from dividends, (often above what they could generate from individual stock picking), risk management for […]

Without a definitive monetary tightening plan from the Federal Reserve, we could be in for increased financial market volatility. Nevertheless, investors can still gain exposure to the upward moves in equities and limit the swings through low-volatility exchange traded fund strategies. Larry Fink, chief executive of BlackRock (NYSE: BLK), warned that global volatility will remain […]

Adding on to its extensive suite of alternative index-based exchange traded funds, PowerShares launched five new smart-beta strategies. Invesco Powershares, along with Dorsey, Wright & Associates, added the PowerShares DWA Tactical Sector Rotation Portfolio (NYSEArca: DWTR) Friday, October 9, according to a press release. DWTR follows DWA’s indexing methodology. Specifically, the DWTR acts like a […]

Three months ago to the day (6/30), I served up a list of reasons for lowering one’s exposure to riskier assets. I discussed weakness in market internals where fewer and fewer corporate components of the Dow and S&P 500 had been propping up the popular U.S. benchmarks. I talked about the faster rate of deterioration […]

We have been sitting through some wild market swings. However, investors can help dampen portfolio gyrations with low-volatility exchange traded funds strategies. “We believe the combination of slower global growth, uncertainty as to the Fed’s future path and less benign credit market conditions suggests that this period of heightened volatility is likely to persist,” writes […]

“He conquers who endures.” ~Persius Weak markets tend to make low volatility indices shine. As a strategy that attenuates the performance of the broader market, the S&P 500 Low Volatility Index had lagged the benchmark S&P 500 by 1.22% from the beginning of 2015 thru July 31. As of last Friday, the tide has shifted […]

Victory Capital, which acquired Compass Efficient Model Portfolios, has launched two new smart-beta international exchange traded funds that could provide more stable exposure to global stocks. On Thursday, the Compass EMP International 500 Volatility Weighted Index ETF (NasdaqGM: CIL) and Compass EMP International High Dividend 100 Volatility Weighted Index ETF (NasdaqGM: CID) began trading, according […]

This article was written by Nick Kalivas, a Senior Equity Product Strategist for Invesco PowerShares Capital Management LLC, a registered investment advisor that sponsors the PowerShares family of exchange-traded funds (ETFs). In the face of economic weakness and continued capital outflows, China devalued its currency, the yuan, on Aug. 11 and 12, fixing it a […]

This article was written by Matthew Dennis, senior portfolio manager for Invesco international/global growth products. International markets experienced increased volatility in the second quarter: Equity volatility rose by 19% in the US and by 50% in Europe.1 Notwithstanding a fade in equity volatility in July on the back of a perceived solution to the Greek […]

As the exchange traded fund universe continues to expand, newer ETFs have become more focused. Among the most popular recent launches, offerings that target popular market segments or provide a customized strategy have been able to attract greater interest. For starters, the iShares Exponential Technologies ETF (NYSEArca: XT) has been the fastest growing new ETF […]

Exchange traded funds allow investors to capture broad markets. However, investors should be mindful of what ETFs they pile into as layering the investments may inadvertently overweight a portfolio to a market segment. “When you purchase an ETF, you might end up with more or less than you bargained for due to the variety of […]

With the sudden bout of volatility shaking up the markets from its listless first half, more conservative investors may consider exchange traded funds that track a low-volatility strategy. Market watchers argue that investors should get use to stock volatility as it is here to stay for some time, reports Michelle Fox for CNBC. Fueling the […]

Investors can now find Value Line research implemented in a group of new dividend and low-volatility exchange traded funds to potentially improve a portfolio’s risk-adjusted returns. In March, Direxion Investments partnered with Value Line Research to launch the Direxion Value Line Small- and Mid-Cap High Dividend ETF (NYSEArca: VLSM), Direxion Value LineMid- and Large-Cap High […]

After European Central Bank President Mari Draghi’s remarked on higher volatility as the new norm, investors who are looking at European markets may consider low-volatility exchange traded fund options to limit the swings. For example, the iShares MSCI Europe Minimum Volatility ETF (NYSEArca: EUMV) is beginning to outpace the Vanguard FTSE Europe ETF (NYSEArca: VGK) […]

Investors seeking to spice up their investment portfolios should consider adding in an emerging market exchange traded fund into the mix after the area largely underperformed developed countries over the past few years. “On a reversion-to-the-mean basis, emerging-markets equities appear to be due for better performance than developed-markets equities going forward,” writes Christine Benz, Morningstar‘s […]

While the low-volatility exchange traded funds may underperform in isolated periods, the strategy can provide a more conservative long-term play with a more attractive risk-adjusted return profile. Based on the recent 30-day volatility readings, volatility in the PowerShares S&P 500 Low Volatility Portfolio (NYSEArca: SPLV), which tracks the 100 least volatile stocks on the S&P […]

Federal Reserve interest rate changes could incite greater swings in stocks and goad the CBOE Volatility Index, along with related exchange traded funds. Jim Strugger of MKM Partners LLC argues that while the Fed rate hikes have not fueled volatility over the past two decades, the central bank’s decision this time around could be different, […]

More conservative investors can utilize a low-volatility global equity exchange traded fund to gain exposure to international stocks that display smaller oscillations. For instance, the iShares MSCI All Country World Minimum Volatility ETF (NYSEArca: ACWV) takes about 340 of the least volatile stocks from the parent MSCI All Country World Index, selecting components based on […]